KALINTrendsMay 2013OPTIMISM: As the stock market continues to show record highs, the number of Americans who say things are going well in the country has reached 50% for the first time in more than six years, according to the new CNN/ORC International poll released recently. According to CNN Polling Director Keating Holland, last summer only 35% were optimistic about the country’s conditions. Americans haven’t been this optimistic since January 2007 when 57% felt the country was in good shape. The poll was conducted by ORC International from April 5-7th. Source: CNN Political, Ashley Killough, 4/12/2013JOBS: Net job gains have averaged 208,000 per month from November through April. That’s up from only 138,000 a month in the previous six months. Much of the job growth has come from fewer layoffs – not increased hiring. Overall hiring is still below pre-recession levels and unemployment remains high at 7.5 percent. But companies are reducing hiring and cutting back on their employees’ hours – not laying off workers Source: Associated Press, 5/9/2013EMPLOYMENT: The number of Americans who applied for unemployment benefits fell by 4,000 last week to a seasonally adjusted 323,000, a five-year low. Layoffs have returned to pre-recession levels, a trend that could lead to more hiring. The last time weekly applications were lower was in January 2008 when they were 321,000. Source: The Washington Post, Associated Press, 5/9/2013INVESTING: Investors have been rushing off the sidelines this year and show no signs of letting up. After avoiding the bull market for fear of being burned again, investors have poured more money into stock funds in January of this year than in any other month ever -- more than $30 billion. So far this year investors have invested more than $60 billion into mutual funds (40%) and exchange-traded funds (60%). Source: CNNMoney, 4/12/2013 & the New York Times, 4/7/2013MORTGAGES: Mortgage rated continue to drop with the 15-year fixed rate loan hitting a record low 2.61%. The most popular mortgage, the 30-year fixed-rate, came in at 3.4%, 0.09 percentage points above its record low. The low 15-year rate means that homeowners can book substantial savings by refinancing from their current 30-year fixed rates. Source: CNNMoney, Les Christie, 4/25/2013HEALTHCARE: Nearly 26 million Americans could be eligible for health insurance subsidies next year. Provisions of the Affordable Care Act will provide tax credits to low- and middle-income consumers to help them purchase health coverage through state-run insurance exchanges. Source: CNNMoney, Tami Luhby, 4/2/2013GASOLINE: The sharp drop in gas prices over the last month or so could provide America’s economy with a jolt, putting money into consumers’ pockets. Gasoline prices have fallen some 30 cents a gallon since hitting a high of nearly $3.80 a gallon earlier this year, with the national average price lower today than it was at the same time last year. The drop is mostly due to declining oil prices.Source: CNNMoney, Steve Hargreaves, 4/24/2013CHINA:Factory activity in China grew at a slower pace in April, the latest in a series of data points indicating weakness in the world’s second largest economy that is extending into the second quarter. The strength of manufacturing in China is considered a barometer of the global economy because of the nation’s role as a powerhouse exporter. And because it makes up a large part of China’s economy, manufacturing plays an important role in shaping domestic policy. Source: Bloomberg News, 5/1/2013DEBT: Investors are rediscovering margin debt. Small investors are borrowing against their portfolios at a rapid clip, reaching levels of debt not seen since the financial crisis. The trend is driven by a combination of rising stock values and rock-bottom interest rates. With margin debt, investors pledge securities – stocks or bonds – to obtain loans from their brokerage firm. The money doesn’t have to be used to just buy more investments. Brokerage firm clients are using margin debt to finance home-improvement projects when they view margin debt as a more attractive option to pay for a project than selling stocks in the portfolio to raise cash. And interest on margin debt is tax-deductible. Source: Wall Street Journal, 5/10/2013LIVING WELL: If you want a free car, free gasoline, free parking (even at airports), free flights almost anywhere in the world, per diem travel allowance up to $3,000 a trip, a month’s paid vacation, 3-day work-weeks, free membership to a top-flight gym, pension plan and 401K plan, full retirement benefits at age 62, free top of the line health insurance with 10 plans to choose from, fully covered, even with a pre-existing condition, get elected to the House of Representatives. Source: Money Morning, David Zeiler, 3/1/2013, Huffington Post, Arthur Delaney, 7/31/2012QUOTE:You cannot make a windmill go with a pair of bellows.George Herbert